Friday, May 23, 2025
Chuck Marunde, J.D., Sequim Buyer's Agent (833) 770-1365


iRealty Virtual Brokers


Buyer's Agent

Sequim Washington

SUBSCRIBE
  • Home
  • Buyer’s Agent
  • Who is Chuck Marunde?
  • Contact Us
  • Search Homes
Tetralogy
No Result
View All Result
  • Login
  • Register
  • Home
  • Buyer’s Agent
  • Who is Chuck Marunde?
  • Contact Us
  • Search Homes
No Result
View All Result
iRealty Virtual Brokers
No Result
View All Result
Home Real Estate v. Stock Market

The Stock Market Crashes – What Does It Mean?

Chuck Marunde by Chuck Marunde
September 30, 2008
Reading Time: 4 mins read
0 0
3

Stock Market CrashThis year has been a tough year in real estate for sellers, but the problem goes far beyond the real estate industry.   Yesterday congress failed to pass a $700 billion dollar bail out package for financial institutions, and the Dow Jones Industrial Average lost 777 points, the largest single day crash in history.   The Wilshire 5000 recorded a paper loss of $1 trillion dollars yesterday.   The Feds recently took over Fannie Mae and Freddie Mac, holders of 70% of the mortgages in the U.S.   WaMu bank files bankruptcy, the largest bankruptcy filing in history.   [Note added Oct 9, 2008:   Since the start of the year, investors have removed more than $81 billion from stock mutual funds according to the New York Times.]   And there is much more to come.

What does all this mean?  

Right now we have 435 congressman and 100 senators arguing over what it means and what to do, and it seems many of them will vote based on getting re-elected.   That sure doesn’t give me any warm fuzzies.   Do you have any confidence in the collective intelligence of these guys?

Money managers and financial advisors are very stressed right now.   Many of their clients are calling with strained voices, trying to be calm, but in truth, many are freaking out.

A couple of years ago, I was in a very trying time personally.   I was running on a treadmill at my favorite gym, AnyTime Fitness.   I had the treadmill set to 45 minutes, and I made the mistake of staring at the timer counting down.   It moved incredibly slow–40 minutes and 35 seconds, 40 minutes and 30 seconds . . .     I remember thinking, “Oh man, I’ll never make it.   I’m already exhausted.”

Then a small voice in my head said, “Chuck, don’t run from the pain, embrace it.   Don’t fear the worse, embrace it.”   In that paradigm came a sense of relief and freedom.

Fear causes stress.   Great fear causes great stress.   Stress causes anxiety and compounds the fear.   Mix in some confusion and you get frustration.   Voila!   Next comes anger.   With stress, anxiety, fear, confusion, and frustration, you get depression.   With depression you get sadness that produces deep pain, and if this is allowed to continue long enough, you get the next natural consequence–paralysis and you begin to disconnect emotionally.

No one on the face of the earth knows what all this economic chaos means, and none of us are going to figure it out with great understanding or develop ultimate strategies to avoid our personal struggles.     In other words, there is no magic wand.

My point?   Take a deep breath.   Have faith.   Make practical decisions to survive this turmoil.   Get good advice from those you trust and who have wisdom.   Do all that you can do, and then let the rest go.   Here’s something to remember.   You and I do not control the world.

If you’ve read from my past articles, you know I think that the stock market has a large gambling component.   There are too many exogenous variables over which you have no control.   Stocks can rise and fall on fundamentals, on a whim, on a rumor, or for no reason at all.   If that isn’t gambling, what is?   Some of the smartest mathematicians in the world have argued that there is order in chaos, even in the stock market.   Maybe.

Besides the thousands of economic factors, there are human variables, such as incompetence (I give you the CEO’s of Fannie Mae, Freddie Mac, WaMu), CFO accounting fraud, misrepresentation, and manipulation.

We are in the toughest real estate market I can remember in 30 years.   Yet real estate does not go “poof.”   It will be there after the dust settles, although the market value certainly is down and may drop further.   Of course, if a person didn’t really buy the real estate but got a maximum loan to leverage his investment, then it may be lost in a foreclosure, unless it is either rented or one has enough cash reserves to cover the mortgage debt.   Still, real estate is NOT subject to the vagaries of the stock market we see now.   The mortgage market is in chaos, but that is because of incompetence and greed.   Real estate itself is one of the most secure long term investments a person can ever make.

In every economic crises, cash is king.   Millions will be made by those with money and good credit to buy real estate in the right locations and by negotiating good deals.   Those who stand by and do nothing when they could have, will pass up huge profit opportunities.   [Another place millions is being made (and lost by amateurs) daily right now is in puts and calls, but that is beyond the scope of this brief article.   Yes that is a form of gambling, too, but there are practical strategies that are conservative and that can result in huge returns in wild up and down markets.]

Conclusion:   Stressing out serves no purpose at all.   Blaming others serves no purpose.   Take a deep breath.   Get good advice.   Make wise decisions.   Let it go and be patient.   And in the future, consider having more of your retirement investments in real estate with no mortgage debt.   Imagine how low your stress would be now if you were in that position?

Last Updated on September 30, 2008 by Chuck Marunde

Tags: Stock Market
ShareTweet
Chuck Marunde

Chuck Marunde

Chuck grew up in remote Alaska, graduated from the University of Alaska with a degree in Economics and Teacher Certification, and after teaching high school for two years, went to law school at Gonzaga University in Spokane, Washington. He served four years as a Captain and JAG in the USAF at Nellis AFB in Las Vegas. After practicing real estate law for 20 years in Washington, Chuck founded iRealty Virtual Brokers covering Sequim and the beautiful Olympic Peninsula. He is the author of 2,200 real estate articles and 60 books, and he produced over 100 real estate videos. Chuck combined his love for real estate and technology to create a massive Internet presence, and his articles and videos and books have been viewed by millions. Chuck is a well recognized real estate expert and his counsel is sought by other brokers and practicing attorneys around the country. Buyers from New York to Hawaii and from Florida to Alaska seek him out to retain him as their Sequim Buyer's Agent. 

Related Posts

Real Estate v. Stock Market

Is A Double Dip Recession On The Horizon?

July 27, 2012
0
Real Estate v. Stock Market

Those Wall Street Tokers

October 15, 2012
0
Real Estate v. Stock Market

Real Estate or the Stock Market?

December 19, 2013
0
Real Estate v. Stock Market

Cash is King, Stock is Not, Real Estate is a Buy

October 22, 2008
1
Real Estate v. Stock Market

Buy Real Estate For Your IRA Retirement Fund

October 19, 2008
0
Real Estate v. Stock Market

Words of Encouragement for the Real Estate Market and Economy

October 20, 2008
1
Next Post

Listing Homes for Sale From a Realtor's Perspective

Homes Sold in Sequim and Port Angeles in September

Comments 3

  1. Don Draper says:
    15 years ago

    With so much personal and public debt it is hard to see how this is going to turn out well. Credit card debt elimination becomes very important going forward.

    Reply
  2. Online Decision Cash Secured Personal Loans says:
    16 years ago

    Hello , I like a lot of your blog post especially the article regarding tock Market Crashes – What Does It Mean?, it looks very interesting….Personal Loan Unsecured No Credit Check Bad Credit

    Reply
  3. investment property says:
    17 years ago

    It is being said that no one person knows what has caused the panic, but actually everyone knows. Cash hasn’t disappeared from the face of the earth there is more now than ever before, it is simply a crisis of confidence. Nobody believes what the fat cat bankers say anymore especially to each other, so there becomes a log jam the other factor is of course the greed how many times have we been there. It is of course time to draw a line in the sand if these people make decisions based on greed in the future and this type of catastrophe happens they should be stripped of their assets at the very least. I know it won’t even make a dent in the problem however it will make them think.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Search 2,200 Articles by Category

Read Most Commented Articles

  • Trending
  • Comments
  • Latest
Buyer and Seller

What if a Buyer and Seller Talk to Each Other?

August 5, 2022
The Sequim Blue Hole

The Sequim Blue Hole – A Map of Rainfall

December 5, 2023
Dangers of Buying a Fannie Mae Foreclosure Through Homepath

Dangers of Buying a Fannie Mae Foreclosure Through Homepath

June 12, 2014
Prorate Propane

How to Prorate Propane at Closing

August 15, 2015
10 Best Places to Retire

Why is Sequim One Of The 10 Best Places To Retire?

September 22, 2019
Home Inspection

The Home Inspection and the Form 35R Inspection Response

January 8, 2013
Port Townsend Stinks

Why Does Port Townsend Stink?

April 16, 2019

FedEx Signature Waiver

September 21, 2012
Buyer and Seller

What if a Buyer and Seller Talk to Each Other?

47
print newspapers

Print Newspapers Losing Readers to the Internet

42
FNMA Killing Transactions by Requiring Private Road Maintenance Agreements

FNMA Killing Transactions by Requiring Private Road Maintenance Agreements

31
real estate documents

What Documents Does a Buyer Need to Buy Real Estate?

24
Hollywood movies in Port Angeles

Hollywood Movies Filmed in Port Angeles

21
roller skates, rollerblades, roll skates

Composite Decking by Home Inspector Tyler Conkle

20
Sequim Wells

Community Well Agreements

19
Sunland Golf Course

Is the Sequim Sunland Golf Course Going Bankrupt?

17
Chuck Marunde and Sabrina Marunde

Living in Sequim is Wonderful

April 5, 2025
Safest Place to Live

The Safest Place to Live: Survival Preparation

July 11, 2024
Best Place to Retire

Best Place to Retire: Florida or Sequim Washington?

June 29, 2024
Sequim MLS

What is the best Sequim MLS site when searching homes for sale?

June 23, 2024
Understanding The NAR Settlement

Understanding the NAR Settlement: What Homebuyers and Sellers Need to Know

July 6, 2024
Top Real Estate Agents

What to Look for In Top Real Estate Agents

June 17, 2024
real estate crash

The Coming Real Estate Crash

June 9, 2024
NWMLS vs OLS

NWMLS vs OLS in Sequim

July 14, 2024

Popular Stories

  • Buyer and Seller

    What if a Buyer and Seller Talk to Each Other?

    0 shares
    Share 0 Tweet 0
  • The Sequim Blue Hole – A Map of Rainfall

    0 shares
    Share 0 Tweet 0
  • Dangers of Buying a Fannie Mae Foreclosure Through Homepath

    0 shares
    Share 0 Tweet 0
  • How to Prorate Propane at Closing

    0 shares
    Share 0 Tweet 0
  • Why is Sequim One Of The 10 Best Places To Retire?

    0 shares
    Share 0 Tweet 0

"I wish I read this before selling my
home. I could have saved $50,000." Andy 

Leaving Comments   I hope you’ll join our community and leave comments from time to time. Please realize that comments, if approved, will be public, so do not use any personal information you don’t want broadcast to the world, and definitely don’t leave a phone number. Comments are not the place to ask Chuck Marunde for help in finding a home. To do that, call or text Chuck.

Neither Chuck Marunde nor iRealty Virtual Brokers offers legal advice on this site. Please Read Our Legal Disclaimer

If you’d like to view how we protect your privacy, see our Privacy Policy.

iRealty Virtual Brokers

iRealty Virtual Brokers reaches out to buyers around the United States with thousands of online articles, MLS sites, apps, real estate books, videos, and much more specifically to help buyers find all the answers to their questions.

iRealty Virtual Brokers
125 Olympic Ranch Ln
Sequim, Washington 98382
Text: (833) 770-1365

Search the MLS in Washington State:

Sequim MLS Map Search

The largest independent real estate blog in the State of Washington with over 2,200 articles totally focused on our client’s best interest, their needs and their curiosity. All free and 100% reliable. I’m here if you need me, 



© 2006-2024 iRealty Virtual Brokers and Chuck Marunde

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Buyer’s Agent
  • Who is Chuck Marunde?
  • Contact Us
  • Search Homes
  • Login
  • Sign Up

© 2006-2024 iRealty Virtual Brokers and Chuck Marunde

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.